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Those following along with Princeton Bancorp, Inc. (NASDAQ:BPRN) will no doubt be intrigued by the recent purchase of shares by Martin Tuchman, Independent Director of the company, who spent a stonking US$720k on stock at an average price of US$32.71. While that only increased their holding size by 3.1%, it is still a big swing by our standards.
See our latest analysis for Princeton Bancorp
Princeton Bancorp Insider Transactions Over The Last Year
In fact, the recent purchase by Martin Tuchman was the biggest purchase of Princeton Bancorp shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of US$31.82. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Martin Tuchman was the only individual insider to buy shares in the last twelve months.
Martin Tuchman bought a total of 59.76k shares over the year at an average price of US$31.89. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Princeton Bancorp insiders own about US$53m worth of shares. That equates to 24% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Princeton Bancorp Insider Transactions Indicate?
Insider sales and purchases have netted out over the last three months, so it's hard to draw any conclusion from recent trading. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Princeton Bancorp insiders are doubting the company, and they do own shares. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. You'd be interested to know, that we found 3 warning signs for Princeton Bancorp and we suggest you have a look.